An interim report by liquidators Grant Thornton says the sale of livestock will cover preferential creditors, employees, who are owed $2m, and Inland Revenue, owed $655,000, but there is no indication on the fate of other creditors.
Taratahi’s 518ha Mangarata farm is being readied for sale, over which Westpac has a secured mortgage, along stock, plant and shares.
The 1194 unsecured creditors are owed $15.863m.
Taratahi farms 42,000 stock units including 1000 dairy cows and the report says other assets are being independently valued ahead of a sale.
The Home Dairy Farm and some leasehold properties will continue to be farmed as any sale of the farm requires Government approval.
It is not obvious what the farm’s future is but the report notes liquidators have not received a viable proposal to provide education from the Wairarapa campus since the December 19 liquidation.
“The Wairarapa campus and Home Dairy farm land are subject to the Taratahi Agricultural Training Centre (Wairarapa) Act 1969,” the liquidators state.
“Any sale of this property requires the approval of the minister of agriculture. The liquidators are liaising with the Ministry for Primary Industries in regard to this.”
The Southern Institute of Technology has taken over the Telford campus in south Otago.
Taratahi, a private training establishment, provided training for 2500 students and employed 250 staff on eight farms it owned or managed around NZ.
In response to declining funding because of falling student numbers Taratahi invested in student support and learning and cut operating expenses, the liquidators said.
Despite that, the cost of education per student exceeded cashflow and the board called in a liquidator.
Throughout the interim liquidation Taratahi’s farms have operated on a business as usual basis.
Accounts prepared by the liquidators show a deficit of $14.3m of liabilities over assets though the list of assets does not include a value for land and buildings, which was not disclosed because of commercial sensitivity ahead of pending sales.
Total assets are valued at $16.886m and liabilities at $31.1m.
Assets include cash of $2650, accounts receivable of $1.8m, livestock at $11.5m, shares at $2.2m and fixed assets of $1.3m.
In addition to $2.7m owed to preferential creditors, secured creditors are owed $12.5m and unsecured creditors, including unsecured employee entitlements, are $15.8m.
